Chipotle Mexican Grill Inc. (NYSE:CMG) shares are trading lower Monday after Starbucks Corporation (NASDAQ:SBUX) denied that it is considering acquiring the fast-casual chain.
- Chipotle shares are under pressure. What’s pulling CMG shares down?
Starbucks Says It Is Not Buying Chipotle
According to CNBC, a Starbucks spokesperson told CNBC’s Jim Cramer, "Starbucks is not buying Chipotle." The denial follows days of rumors about what would be the biggest restaurant takeover ever. The Financial Times reported Thursday, citing people familiar with the matter, that Starbucks had been working with advisers on a takeover proposal for Chipotle in recent months. Semafor reported earlier in October that Chipotle had hired advisers to defend against activist investors or an unwanted takeover bid.
Why the Deal Talk Mattered for Both Stocks
The deal rumors sent Chipotle shares higher and Starbucks shares lower. Chipotle is trying to recover from a rocky 2025, when traffic to its restaurants fell, and its shares are down about 20% over the last year, which made it a cheaper target. Chipotle investors were looking forward to a potential reunion with Brian Niccol, who previously led Chipotle and is now CEO of Starbucks. Starbucks shareholders were largely concerned about an expensive distraction while the coffee chain is in the middle of its own turnaround.
Chipotle Shares Edge Lower
CMG Price Action: At the time of publication, Chipotle shares are trading 4.02% lower at $30.33, according to data from Benzinga Pro.
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